CarGurus, Inc. (NASDAQ:CARG) Q4 2023 Earnings Conference Call February 26, 2024 5:00 PM ET Company Participants Kirndeep Singh - VP & Head, Investment Jason Trevisan - Chief Executive Officer Sam Zales - President & Chief Operating Officer Elisa Palazzo - Chief Financial Officer Conference Call Participants Marvin Fong - BTIG Rajat Gupta - JPMorgan Matt Logan - RBC Capital Markets Thomas White - D.A. Davidson Jed Kelly - Oppenheimer Christopher Pierce - Needham & Company Ronald Josey - Citi John Colantuoni ...

For the quarter ended December 2023, CarGurus (CARG) reported revenue of $223.12 million, down 22.2% over the same period last year. EPS came in at $0.35, compared to $0.22 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $218.14 million, representing a surprise of +2.28%. The company has not delivered EPS surprise, with the consensus EPS estimate being $0.35.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how th ...

CarGurus Inc. shares fell more than 11% in the extended session Monday after investors looked past a better-than-expected quarter for the online car-selling platform to zero in on weaker current-quarter guidance. CarGurus CARG, +0.21% lost $23.7 million, or 21 cents a share, in the fourth quarter, contrasting with gains of $159 million, or 20 cents a share, in the year-ago period. Adjusted for one-time items, the company earned 35 cents a share. Revenue fell 22% to $223.1 million. Analysts polled by FactSe ...

Technology and Product Development Our Mobile Technology 19 We protect our intellectual property through a combination of patents, copyrights, trademarks, service marks, domain names, trade secret protections, confidentiality procedures, and contractual restrictions. In addition to the protection provided by our intellectual property rights, we enter into confidentiality and proprietary rights agreements with our employees and relevant consultants, contractors, and business partners. We control the use of o ...

Financial Performance - 4Q'23 Consolidated Net Loss of $(22.6) million, down 197% YoY; Non-GAAP Consolidated Adjusted EBITDA of $61.2 million, up 120% YoY [4] - Total revenue for FY 2023 was $914.2 million, a decrease of 45% YoY; Marketplace revenue was $698.2 million, down 6% YoY [11] - Consolidated net income for the three months ended December 31, 2023, was $(22,603) thousand, compared to $23,231 thousand for the same period in 2022 [39] - Non-GAAP consolidated net income for the three months ended December 31, 2023, was $38,803 thousand, up from $17,430 thousand in the same period of 2022 [40] - Total revenue for the three months ended December 31, 2023, was $223,123, a decrease of 22.2% compared to $286,744 in the same period of 2022 [59] - The company reported a net loss attributable to common stockholders of $23,743 for the three months ended December 31, 2023, compared to a profit of $159,247 in the same period of 2022 [59] - Non-GAAP net income attributable to common stockholders for the year ended December 31, 2023, was $140,849 thousand, compared to $131,047 thousand for the year ended December 31, 2022 [40] Revenue and Growth - 4Q'23 Marketplace Revenue grew by 10% YoY, marking the fastest growth rate in 10 quarters [25] - U.S. Marketplace Segment Revenue was $168.9 million, a 9% increase year-over-year [26] - Digital Wholesale Segment Revenue fell to $40.9 million, down 66% year-over-year [26] - The company aims to enhance its marketplace revenue through increased subscriptions and digital advertising products, which is reflected in the growth of QARSD [70] Cash and Investments - Cash, Cash Equivalents, and Short-Term Investments at period end totaled $312.1 million, down 34% YoY [11] - Cash, cash equivalents, and restricted cash at the end of the period were $293,926 thousand, down from $484,132 thousand at the end of the previous year [39] - The company experienced a net cash increase of $981 thousand from foreign currency impacts during the three months ended December 31, 2023 [39] - The company repurchased $99.9 million worth of shares in 4Q'23 and $204.1 million in FY 2023 [10] Operating Expenses - Operating expenses for FY 2023 were $618.8 million, an increase of 13% YoY [11] - Operating expenses for the three months ended December 31, 2023, totaled $190,300, an increase of 77.0% compared to $107,421 in the same period of 2022 [59] - The total cost of revenue and operating expenses was $1.48 billion, which includes a notable rise in depreciation and amortization expenses [43] Market Metrics - U.S. Paying Dealers totaled 24,318, a decrease of 1% year-over-year [26] - International Paying Dealers reached 6,617, reflecting a 2% decline year-over-year [26] - The average monthly unique users are considered a key indicator of user experience and brand awareness, impacting marketplace revenue [3] - U.S. Average Monthly Unique Users decreased to 29.3 million, an 11% increase year-over-year [26] Future Outlook - Guidance for 1Q 2024 includes total revenue of $201 million to $221 million and Non-GAAP Consolidated Adjusted EBITDA of $41 million to $49 million [18] - The company aims to maintain financial discipline while investing in growth initiatives and operational excellence in 2024 [25] - The company plans to continue investing in growth initiatives and adapting to market trends [32] - The conference call to discuss financial results and business outlook is scheduled for February 26, 2024 [29] Stock-Based Compensation - Stock-based compensation expense increased to $14,071 thousand for the three months ended December 31, 2023, from $13,227 thousand in the same period of 2022 [40] - The company reported a significant increase in stock-based compensation expense for CarOffer, LLC Units, amounting to $55,543 thousand for the three months ended December 31, 2023 [40] - Stock-based compensation expense included in cost of revenue was $186 million for the three months ended December 31, 2023, compared to $114 million in the same period of 2022 [65] Assets and Liabilities - Total liabilities increased to $302,075 thousand from $155,744 thousand year-over-year [35] - CarGurus reported total current assets of $391.2 million as of December 31, 2023, down from $557.4 million in 2022, representing a decrease of approximately 30% [57] - Total assets for CarGurus were $918.9 million as of December 31, 2023, compared to $927.1 million in 2022, indicating a slight decrease of around 0.2% [57] Financial Metrics and Adjustments - The company has not reconciled its non-GAAP measures to GAAP due to unpredictability of certain financial items [28] - The company has updated its financial metrics to provide greater transparency regarding its operational performance and future prospects [68] - Non-GAAP free cash flow for the three months ended December 31, 2023, was $(17,894) million, compared to $90,476 million in the same period of 2022 [67]

Wall Street analysts expect CarGurus (CARG) to post quarterly earnings of $0.35 per share in its upcoming report, which indicates a year-over-year increase of 59.1%. Revenues are expected to be $218.14 million, down 23.9% from the year-ago quarter.Over the past 30 days, the consensus EPS estimate for the quarter has remained unchanged. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.Prior to a company's earnings release, it is of utmost import ...

CAMBRIDGE, Mass., Feb. 01, 2024 (GLOBE NEWSWIRE) -- CarGurus, Inc. (Nasdaq: CARG), the No. 1 visited digital auto platform for shopping, buying, and selling new and used vehicles1, announced it will issue a press release reporting financial results for the fourth quarter and fiscal year ended December 31st, 2023, after the close of the market on February 26th, 2024. CarGurus will host a conference call and live webcast to discuss those financial results for investors and analysts at 5:00 p.m. Eastern Time o ...

deepblue4you These days, it seems that the stock market has very little patience for turnaround stories. Investors latch onto the latest growth stories and pay very little attention to companies that are struggling with business transitions. CarGurus (NASDAQ:CARG) falls squarely into this bucket. Dealing with softer post-pandemic demand for used cars, plus managing its rushed entry into the wholesale business, revenue and profit growth has stalled. Still - there is hope, as the stock is up more than 30% ...

CAMBRIDGE, Mass., Jan. 29, 2024 (GLOBE NEWSWIRE) -- CarGurus (NASDAQ:CARG), the No. 1 visited digital auto platform for shopping, buying, and selling new and used vehicles1, today announced the addition of Chase to its multi-lender financing platform, expanding options for consumers looking to pre-qualify for auto financing from the comfort of home. Available nationwide, Chase joins CarGurus' network of participating lenders — which also includes Capital One, Global Lending Services, and Westlake Financial ...

CAMBRIDGE, Mass., Jan. 24, 2024 (GLOBE NEWSWIRE) -- CarGurus (NASDAQ:CARG), the No. 1 visited digital auto platform for shopping, buying, and selling new and used vehicles1, today released its 2024 Best Used Car Awards. Referencing an expansive set of pricing and availability data, consumer trends, and experience test driving over a thousand cars, CarGurus' panel of expert reviewers has identified the best used cars in 11 categories, including the best family car; city car; large, small, and midsize SUV; an ...